The Malaysian government welcomed the world court judgment handing it two tiny islands in the Sulawesi sea, expressing confidence the ruling would not harm ties with neighbouring Indonesia.

"We are happy with the announcement. It will not jeopardise relations. Both governments agreed to go to the world court after we failed to resolve it through negotiations," Shafie Apdal, deputy defence minister told AFP in a telephone interview from the The Hague.

"Everybody now must adhere to the ruling," he added.

Shafie's political constituency in eastern Sabah state fronts the two islands.

Ligitan and Sipidan, small islands off the coast of Sabah and Indonesia's East Kalimantan province, have been claimed by the two countries in a dispute dating back more than three decades.